Sinopharm Group Co. Ltd. — Earnings Release 2024

Mar 17, 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

国药集团

SINOPHARM

國藥控股股份有限公司

SINOPHARM GROUP CO. LTD.*

(A joint stock limited company incorporated in the People's Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司)

(Stock Code: 01099)

ANNOUNCEMENT

PRELIMINARY FINANCIAL DATA OF SINOPHARM ACCORD FOR THE YEAR OF 2024

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Reference is made to the overseas regulatory announcement of Sinopharm Group Co. Ltd. (the "Company") dated 17 March 2025 (the "Announcement") in relation to the preliminary financial data for the year ended 31 December 2024 (the "Reporting Period") of China National Accord Medicines Corporation Ltd. ("Sinopharm Accord"), a subsidiary of the Company and whose A shares and B shares are listed on the Shenzhen Stock Exchange (stock code for A shares: 000028; stock code for B shares: 200028).

The board of directors of the Company would like to draw the attention of its shareholders and the public investors to the following principal unaudited financial data and indicators of Sinopharm Accord for the Reporting Period as set out in the Announcement.

• The Company is registered as a non-Hong Kong company under the Hong Kong Companies Ordinance under its Chinese name and the English name "Sinopharm Group Co. Ltd."

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PRINCIPAL FINANCIAL DATA AND INDICATORS OF SINOPHARM ACCORD

Unit: Ten thousand Yuan
Currency: RMB

	The Reporting Period	Same period of last year	Increase/Decrease (%)
Revenue	7,437,849.44	7,547,748.46	-1.46
Operating profit	57,347.83	246,742.52	-76.76
Total profit	57,546.94	247,322.65	-76.73
Net profit attributable to shareholders of the listed company	64,249.34	159,925.58	-59.83
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses	58,117.72	153,282.35	-62.08
Basic earnings per share (Yuan)	1.15	2.87	-59.93
Weighted average ROE	3.67%	9.56%	Decrease by 5.89 percentage points
	At the end of the Reporting Period	At the beginning of the Reporting Period	Increase/Decrease (%)
Total assets	4,755,586.04	4,757,109.48	-0.03
Equity attributable to shareholders of listed company	1,766,952.84	1,741,480.87	1.46
Share capital (in 0’000 shares)	55,656.51	55,656.51	0.00
Net assets per share attributable to shareholders of listed company (Yuan)	31.75	31.29	1.47

Note: The financial data as at the end of the Reporting Period are filled in according to the consolidated financial statements of Sinopharm Accord.

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INFORMATION OF THE OPERATION RESULTS AND FINANCIAL SITUATION

According to the preliminary accounting records, during the Reporting Period, Sinopharm Accord has achieved a revenue of RMB74.378 billion, representing a year-on-year decrease of 1.46%; an operating profit of RMB573 million, representing a year-on-year decrease of 76.76%; a total profit of RMB575 million, representing a year-on-year decrease of 76.73%; and a net profit attributable to shareholders of the listed company of RMB642 million, representing a year-on-year decrease of 59.83%. Accordingly, the basic earnings per share decreased by 59.93% year-on-year, and the weighted average ROE decreased by 5.89 percentage points year-on-year. The decrease in profit of Sinopharm Accord was mainly due to the fact that the results of the retail segment declined affected by multiple factors such as changes in industry policy and intensified market competition, resulting in a large gap between the operation results of the acquired asset group and the expectations. According to the preliminary result of the impairment test and based on the principle of prudence, Sinopharm Accord made an impairment provision of RMB970 million for goodwill and intangible assets (brand-use rights and sales network) arising from allocation of acquisition consideration, which reduced the net profit attributable to shareholders of the listed company during the Reporting Period by RMB561 million. For details, please refer to the announcement published by Sinopharm Accord (Sinopharm Accord: Announcement on Impairment Provision) (No.: 2025-12).

The distribution segment has achieved a revenue of RMB52.984 billion, representing a year-on-year increase of 1.98% and a net profit of RMB922 million, representing a year-on-year decrease of 12.74%, mainly due to the delay in collection of account receivables affected by the industry policies and market conditions, resulting in an increase in the scale of capital occupation and the corresponding increase in cost of capital. The disposal gain was arisen from the land acquisition by the government in 2023, while no such matter occurred during the current period. The profit declined due to the combined impact of the above factors. The retail segment (i.e. "Sinopharm Holding Guoda Drugstore Co., Ltd.") has achieved a revenue of RMB22.357 billion, representing a year-on year decrease of 8.41% and a net profit of RMB-1.104 billion, representing a year-on-year decrease of 309.53%, mainly due to provision of asset impairment for goodwill and intangible assets arising from allocation of acquisition consideration, resulting in a decline in profits.

Amidst the dual challenges of a complex external environment and the transformation and upgrading of high-quality development, Sinopharm Accord adhered to strategic guidance, closely followed the changing trends of the external economy and market, proactively adjusted its business development strategies, focused on the development of its main business and optimization of its structure, pushed forward the value-driven business transformation, strictly controlled compliance management and fulfilled the general tone of "seeking progress while maintaining stability" with resilient and upward development, continuously promoting high-quality development of Sinopharm Accord.

Shareholders and public investors should note that the principal unaudited financial data and indicators of Sinopharm Accord during the Reporting Period contained in this announcement are only preliminary accounting data, which have not been audited by an accounting firm, and the final data to be disclosed in the annual report of Sinopharm Accord may differ.

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By order of the Board
Sinopharm Group Co. Ltd.
Zhao Bingxiang
Chairman

Shanghai, the PRC
17 March 2025

As at the date of this announcement, the executive Directors are Mr. Lian Wanyong and Mr. Sun Jinglin; the non-executive Directors are Mr. Zhao Bingxiang, Mr. Chen Qiyu, Mr. Hu Ligang, Mr. Zu Jing, Mr. Xing Yonggang, Mr. Wen Deyong, Mr. Li Dongjiu and Ms. Feng Rongli; and the independent non-executive Directors are Mr. Chen Fangruo, Mr. Li Peiyu, Mr. Wu Tak Lung, Mr. Yu Weifeng and Mr. Shi Shenghao.

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